Thanks to Gale Vaz-Oxlade, I will not be using my credit card this week. No, I’m not in debt or apart of the Occupy movement. I simply don’t like the fact that Canadian financial institutions as well as major credit card companies lend more than they should. Why is no-credit week from the 13th to the 19th? Well, this week is actually Credit Education week in Canada, where the Banks ‘educate’ us on good use of credit. Their educational tactics and lending practices are obviously not working. Many Canadians are just hanging in there, while many others have already fallen into the debt trap. How are the banks gaging the credit-worthiness of their clients? The age-old credit score, which may be flawed as Vaz-Oxlade points out in her interview.
An article about the no-credit week is here.
Just to give you a personal example. A couple weeks ago my husband and I got into a housing fever. Housing fever?? Yes, the “we want a house, and we want it now, because everyone else who is married and has kids owns a house” (mom says I should read the Wealthy Barber Returns). You see my husband and I did things backwards according to Western society. We got married first, then moved in together, and then had a kid, and when we save enough money we will purchase a home. So, after succumbing to society pressures we applied for a mortgage using our two incomes (even though I’m on mat leave) and used one of their mortgage calculators. It was incredible how much they were willing to lend us. Take a look at the image below. I took out the name of the Bank, but this will give you a good idea what I’m talking about.
I always wondered how people in Ottawa could afford those $500,000+ homes. This is
, my husband’s monthly net pay doesn’t come close to the mortgage payment. What if I needed to stay home with my baby, or got pregnant again? We wouldn’t have money for food. Yikes, that would be scary. In the end, we didn’t sign up for the mortgage or purchase a house. After seeking counsel, we realized we are quite happy where we are in life. I have my life, a roof over my head, a warm bed, a happy marriage, a healthy baby, good food, a daily Mass at a Church beside our apartment. I am a very wealthy lady. Thank you Lord!
Anywho, that’s my story. The end. Tea, anyone?
|Bye. Nap Time.